In the best year for the freight transportation industry since the Great Recession, logistics managers chalk up efficiencies that drive further U.S. economic growth. However, capacity issues persist, causing shippers to worry about rate hikes as carriers continue to be meticulous in their partnerships.

Does your organization struggle with the integration of information between your internal systems, processes and partner portals? You're not alone! Kapow Software alongside EFT has surveyed over 200 organizations regarding the importance of information access, visibility and discusses some of the major goals for supply chain and logistics organizations.

During this webcast we'll explore how supply chain execution convergence (SCEC) helps break down the barriers resulting from disparate, fragmented technology solutions allowing you to more effectively serve customers, adapt to changing business cycles, and save both money and resources.

As has been the case in recent weeks, rail traffic for the week ending April 30 was mixed, according to data released by the Association of American Railroads (AAR).

Carload volume—at 295,347—was flat on an annual basis and ahead of the week ending April 23, which hit 292,706 and slightly behind the week ending April 16 at 295,426. It was also behind the week ending April 2, which hit 305,905 carloads, marking the highest weekly carload tally since the end of 2008.

Carload volume was down 2.4 percent in the East and up 1.7 percent out West. Carloads on a year-to-date basis are at 4,951,226 for a 3.8 percent year-over-year increase.

Intermodal volumes for the week ending April 30 at 229,677 trailers and containers were up 7.8 percent year-over-year. This outpaced the week ending April 23 at 225,668 trailers and containers, and was behind the week ending April 16 at 230,460 trailers and containers. Trailers and containers through the first 17 weeks of 2011 are at 3,770,745 for an 8.8 percent increase.

Despite the sequential decrease in intermodal volumes, intermodal continues to gain market share and increased interest from shippers that are dealing with increasing fuel costs for over-the-road transportation. That was made clear at last week’s NASSTRAC Logistics Conference and Expo, with several truckload carriers telling LM that their intermodal businesses are on the rise, due to shippers seeking cost relief from rising diesel prices in exchange for an extra day or two of transit times.

Of the 20 commodity groups tracked by the AAR, 9 were up annually. Metallic ores were up 22.1 percent, and grain loadings were up 7.4 percent. Coal was down 1.9 percent, and farm products excluding grain were down 6.0 percent.

Estimated ton-miles for the week were 32.7 billion for a 0.9 percent annual decrease, and on a year-to-date basis, the 555.7 billion ton-miles recorded are up 5.0 percent.

With Class I rail carriers reporting first quarter earnings in recent weeks, the overall takeaway was that rail service and intermodal providers are above the curve when it comes to pricing power and service during what is clearly becoming an industrial-led economic recovery rather than a consumer-led one.

“The freight rail industry handled the toughest winter on record fairly well, all in all, for the most part in batter shape then entering it as it prepares for what should be a strong 2011 as we move past ‘recovery’ to modest economic growth,” wrote Tony Hatch, principal of ABH Consulting, in a research note. “In such a scenario, the rails are poised to gain market share, grow revenues and earnings above S&P500 levels, and demonstrate higher levels of share, service, productivity and incremental margin growth than even a fairly bullish Wall Street expects.”

About the Author

Jeff BermanGroup News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!

Get timely insider information that you can use to better manage yourentire logistics operation.

Recent Entries

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

A new Government Accountability Office report on the effects of changes to truck driver hours of service rules has sparked a war of words between the American Trucking Associations and Federal Motor Carrier Safety Administration, the arm of the Transportation Department that is in charge of making those rules.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in May dropped 10.8 percent annually to $92.7 billion, following a 6.8 percent annual decline to $93.3 billion in April.

Rumors of transportation and logistics titan UPS acquiring Chicago-based transportation management services provider Coyote Logistics for $1.8 billion have become a reality, with UPS announcing today that the deal is now official.